How To Cold Stake Navcoin For Beginners

staking

Staking Navcoin is a great option to get passive income. Current staking rates are ~14% / year for Navcoin (Source: stakingrewards.com)

But, there is one problem. Staking can be insecure. Your wallet has to be online 24/7 and connected with other nodes. It also stores your private key and there is the risk that you get hacked, etc. Coldstaking got implemented in the Navcoin protocol to help people stake securely.

How does Navcoin coldstaking work

Instead of one node, you need two nodes if you want to cold stake. One of the wallets has a spending address, which has access to your coins and one of your wallets has a staking address. You can combine both and get a cold staking address.

So, your cold wallet is the one which has the spending address and your “hot” wallet is the one which has your staking address. Afterward, you use both addresses to generate a cold staking address. Imagine it as building a bridge between these two wallets.

If you transfer your coins from your spending address to your cold staking address, you still have access to these coins, but you will be able to start staking with these coins with your “hot” wallet.

Choosing the right coldstaking environment

Before we start, we have to discuss which environment is best for you. You have two options here:

  1. You use a wallet/node from a staking pool provider like FireStake
  2. You set up your own node and control/manage it yourself

I will provide a guide for both options, but let’s have a look at the advantages of the provided options above.

Setting up your own node

  • You need a PC that runs 24/7. Usually, people use a VPS (Virtual private server) for that. If you do use a VPS, you need experience with that. Don’t worry, I have a copy and paste guide for you. However, you need a little experience with Linux systems or it will be hard.
  • You need to manage the wallet. If the wallet/node is outdated, it probably doesn’t generate staking rewards anymore. So, keep your node up to date.
  • You need to pay for the VPS.

Using a staking pool provider like FireStake for cold staking

  • Usually cheaper compared to VPS
  • You have no control over the staking node. However, you have control over your coins and the staking node (staking pool) can never spend it.
  • You usually have a good user interface that makes it easier to interact with the staking node
  • You can stake coins with a light wallet (usually a mobile wallet) really easy

At this point, you have to decide which option you want. I provide a guide for both options, as already mentioned.

How to cold stake with a staking pool like FireStake

#1 Register at FireStake

This is straight forward. You go to FireStake.com and register your account. You don’t need KYC to cold stake, but if you decide to use the normal staking pool, you need KYC after a portfolio value of $15.000.

#2 Choose a contract

Navigate to the cold staking dashboard. Now you have the option to buy either a global contract that unlocks every coin or you can buy a contract for one specific coin. Either way, you can buy the contracts for one month or one year.

#3 Generate a coldstaking address

After the payment for your contract is complete, you get access to the full service. Click on the Navcoin pool button, insert your spending address in the text field, and click ‘generate cold staking address’.

#4 Deposit coins to the coldstaking address

Deposit your coins to the coldstaking address. Newly staked coins are automatically added to the coldstaking address so they start staking automatically. That’s it. You will start to receive staking rewards after a while, depending on how many coins you use for staking.

Don’t forget to pay for your contracts or you will stop staking. Remember, FireStake has no access to your coins, so don’t lose your private key. Not even the staking pool can recover your coins if you lose them.

How to cold stake with your own node

#1 Choose a VPS

For this example, I chose Time4VPS as my VPS provider. However, if you have a free PC that can run 24/7, you can use it, but usually, a VPS is the best option, because you don’t have to manage that server.

Buy a Container VPS from Time4VPS with 4GB RAM. They are the cheapest version and I use Time4VPS for my own nodes and I never had a problem. The support also answers your tickets fast (4-6h) that makes the service even better.

I should mention that you can use any VPS as long as it has at least 4GB RAM or your wallet could crash sometimes and stops staking. After you bought the VPS, install the Ubuntu distribution on the system.

#2 Connecting to the VPS

To connect to your VPS, use PuTTY. It’s a free SSH client you can use to connect to your server.
Go to your Time4VPS dashboard and use the login credentials to log in to your VPS.

#3 Install the Navcoin core wallet

Before we start installing the wallet, here is a useful list of commands you can use for the Navcoin wallet. Don’t worry, I will show you when and where to use each command.

Navcoin wallet commandDescription
navcoind startStarts the wallet
navcoind start -daemonStarts the wallet in the background (Preferred)
navcoin-cli stopStops the wallet
navcoin-cli getinfoGet basic info about the wallet
navcoin-cli getnewaddressGet a new Navcoin address
navcoin-cli encryptwallet <passphrase>Encrypts the wallet with a passphrase. It stops the wallet and you have to start it again.
navcoin-cli walletpassphrase <passphrase> <time>Unlocks the wallet for a certain time

Now, it is time to install some dependencies. Copy-paste these commands in your terminal one by another.

apt-get install curl wget tar
curl -o- https://raw.githubusercontent.com/navcoin/navcoin-dev-tools/master/ubuntu-18.04-navcoin-core-dev-setup.sh | bash
wget https://github.com/navcoin/navcoin-core/archive/5.0.1.tar.gz
tar xvzf file.tar.gz

Now, to start the Navcoin wallet use this command.

~/navcoin/src/navcoind -daemon

#4 Encrypt the wallet

To start staking, you need to encrypt your wallet. To do that, use the following command.

~/navcoin/src/navcoin-cli encryptwallet <passphrase>

You have to remember the wallet passphrase or you can’t start staking with your node anymore. Afterward, you have to start the wallet again with the command provided above.

#4 Generate a coldstaking address

Unlock the wallet to get full access to your wallet.

~/navcoin/src/navcoin-cli walletpassphrase <passphrase> <time (in seconds)>

Before we can start generating a coldstaking address, we need a staking address on the staking node. Use this command to get a staking address.

~/navcoin/src/navcoin-cli getaddress

To generate a coldstaking address, use this command.

~/navcoin/src/navcoin-cli generatecoldstakingaddress <spending address> <staking address>

#5 Deposit coins to the coldstaking address

Now, deposit some coins from your cold wallet to your coldstaking address. You automatically start staking if your coins are mature and your staking node is unlocked for staking.

Happy staking!

FAQ

Is Navcoin mineable?

No, Navcoin is not mineable. You can only stake Navcoin.

When do I receive Navcoin staking rewards?

To get an estimated time, use the following formula.

Estimaed amount of blocks you find in 1 year:

EA = <your coin amount> * 0.14 (Staking profit / year) / 2 || Example: 1000*0.14/2 = 70 blocks

To calculate the rewards you find in one month, use this formula.

1051200 (Blocks found in one year) / EA = T (How many blocks I need to wait to find a new block) || Example: 1051200/70 = ~15.000 blocks

T / 2880 = W (Who long you have to wait to receive rewards in days) || Example: 15.000/2880 = ~5 days

Maximilian Groß

I'm a software engineer. I'm the owner of FireStake.com and know the crypto space since 2016. Furthermore, I share everything I learn about crypto on this blog.

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